Fifth Third Bancorp (FITB) 2025 Q2 法說會逐字稿

Hello, and thank you for standing by. My name is Tiffany, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fifth Third second-quarter 2025 earnings conference call. (Operator Instructions). And I would now like to turn the call over to Matt Curoe, Senior Director of Investor Relations. Mr. Curoe, please go ahead.

您好，感謝您的支持。我叫蒂芬妮，今天我將擔任您的會議主持人。現在，我歡迎大家參加五三公司 2025 年第二季財報電話會議。（操作員指令）。現在我想將電話轉給投資者關係高級總監 Matt Curoe。Curoe先生，請繼續。

Morning, everyone. Welcome to Fifth Third second-quarter 2025 earnings call. This morning, our Chairman, CEO, and President, Tim Spence; and CFO, Bryan Preston, will provide an overview of our second quarter results and outlook. Our Chief Credit Officer, Greg Schroeck, has also joined for the Q&A portion of the call.

大家早安。歡迎參加 Fifth Third 2025 年第二季財報電話會議。今天上午，我們的董事長、執行長兼總裁 Tim Spence 和財務長 Bryan Preston 將概述我們的第二季業績和展望。我們的首席信貸官 Greg Schroeck 也參加了電話會議的問答環節。

Please review the cautionary statements in our materials, which can be we found in our earnings release and presentation. These materials contain information regarding the use of non-GAAP measures and reconciliations to the GAAP results as well as forward-looking statements about Fifth Third's performance. These statements speak only as of July 17, 2025, and Fifth Third undertakes no obligation to update them.

請查看我們資料中的警告聲明，可以在我們的收益報告和介紹中找到。這些資料包含有關使用非公認會計準則 (non-GAAP) 指標和與公認會計準則 (GAAP) 結果對帳的信息，以及有關 Fifth Third 業績的前瞻性陳述。這些聲明僅截至 2025 年 7 月 17 日有效，Fifth Third 不承擔更新這些聲明的義務。

Following prepared remarks by Tim and Bryan, we'll open up the call for questions. With that, let me turn it over to Tim.

在提姆和布萊恩發表準備好的發言後，我們將開始提問。說完這些，讓我把它交給提姆。

Thanks, Matt. And good morning, everyone. At Fifth Third, we believe great banks distinguish themselves, not my how they performed in benign environments, but rather by how they navigate uncertain ones. In a period of tariff negotiations, cross-currency and interest rates and significant regulatory change, Fifth Third continues to deliver excellent profitability, strong credit trends, and accelerating revenue growth.

謝謝，馬特。大家早安。在五三銀行，我們相信優秀的銀行之所以能脫穎而出，不在於它們在良性環境中的表現如何，而是它們如何應對不確定的環境。在關稅談判、跨貨幣和利率以及重大監管變化的時期，五三銀行繼續保持出色的獲利能力、強勁的信貸趨勢和加速的收入成長。

This morning, we reported earnings per share of $0.88 or $0.90, excluding certain items outlined on page 2 of the release, exceeding consensus estimates. Adjusted revenues grew by 6% year-over-year, led by 7% growth in NII. Adjusted PPNR increased 10%. And we delivered 250 basis points of positive operating leverage, our third consecutive quarter of positive operating leverage.

今天上午，我們報告每股收益為 0.88 美元或 0.90 美元（不包括新聞稿第 2 頁概述的某些項目），超過了普遍預期。調整後營收年增 6%，其中 NII 成長 7%。調整後的PPNR增加了10%。我們實現了 250 個基點的正營運槓桿，這是我們連續第三個季度實現正營運槓桿。

Our key profitability metrics continue to be very strong and among the best of all peers who have reported thus far. Our adjusted return on assets was 1.2%. Our adjusted return on tangible common equity was 18%. And our efficiency ratio was 55.5%.

我們的關鍵獲利指標持續保持強勁，在迄今為止報告的所有同業中名列前茅。我們的調整後資產報酬率為1.2%。我們的調整後有形普通股權益報酬率為 18%。我們的效率比率是55.5%。

Our credit metrics were strong and improved, as we said they would. At 45 basis points, net charge-offs were at that bottom of our guidance range and improved over the prior year. NPAs declined 11% sequentially, led by an 18% decline in commercial NPAs. Early-stage delinquencies declined again in our near historical lows. As a result of our strong financial performance and the positioning of our balance sheet, tangible book value per share increased by 18% over the prior year and by 5% sequentially.

正如我們所說的那樣，我們的信用指標強勁且有所改善。淨沖銷額為 45 個基點，位於我們指引範圍的底部，並且比前一年有所改善。不良資產季減 11%，其中商業不良資產下降 18%。早期拖欠率再次下降至接近歷史最低水準。由於我們強勁的財務表現和資產負債表的定位，每股有形帳面價值比上年增長了 18%，比上一季增長了 5%。

The strategic investments we have made over the past several years drove our results in the quarter. In a quarter where an even C&I loan demand and a soft housing market made loan growth happened for the industry, our diversified loan origination platforms produced average loan growth of 5% over the prior year. We grew loans in C&I, CRE, leasing, mortgage, home equity, auto and (inaudible) dividends tech platforms.

我們過去幾年所做的策略性投資推動了本季的業績。在商業和工業貸款需求穩定且房地產市場疲軟導致行業貸款成長的本季度，我們多元化的貸款發放平台的平均貸款成長率比上年同期提高了 5%。我們在商業和工業、企業房地產、租賃、抵押貸款、房屋淨值、汽車和（聽不清楚）股息技術平台上增加了貸款。

Investments we've made should continue to support strong loan growth in future quarters. Commercial relationship manager headcount increased by 11% year-over-year and (inaudible) had record production in the first half of the year.

我們所做的投資應該會繼續支持未來幾季的強勁貸款成長。商業關係經理人數年增 11%，並且（聽不清楚）上半年的產量創下了歷史新高。

In our home equity business, we were number two market share in our footprint. And first half production growth was third best in the country. Both (inaudible) and home equity are examples of the benefits we have achieved from digitally-enabled lending channels, combined with one bank collaboration.

在我們的房屋淨值業務中，我們的市佔率排名第二。上半年產量增幅高居全國第三。(聽不清楚)和房屋淨值都是我們透過數位化貸款管道與銀行合作所獲得的好處的例子。

Our investments in the Southeast also continue to produce strong results across business lines. Our consumer bank grew net new households by 6% over the prior year in the Southeast. The granular deposit growth those households provide has provided flexibility to continue to manage deposit costs even as the Fed pause on rate cuts.

我們在東南部的投資也持續為各個業務線帶來強勁的業績。我們的消費銀行在東南部地區的淨新增家庭數量比前一年增加了 6%。這些家庭提供的細粒度存款成長為即使在聯準會暫停降息的情況下繼續管理存款成本提供了靈活性。

In the second quarter, our average cost of consumer and small business deposits in the Southeast was 191 basis points, a 250 basis points plus spread to Fed funds. We have added 10 branches year-to-date in Southeast, then we'll open another 40 before year end, bringing us to nearly 400 branches across all our Southeast markets.

第二季度，我們在東南部的消費者和小型企業存款的平均成本為 191 個基點，比聯邦基金利率高出 250 個基點。今年迄今為止，我們在東南部地區新增了 10 家分行，年底前還將新增 40 家分行，使我們在東南部所有市場的分行總數達到近 400 家。

In commercial banking, our Southeast regions have contributed more than half of total middle market loan growth over the past year. With North Carolina, South Carolina, Georgia, and Alabama producing the strongest results. New middle market relationship production has also accelerated across the Southeast where our teams have added 50% more new quality relationships year-to-date than they did over the same period last year.

在商業銀行業務方面，我們東南地區的業務在過去一年中貢獻了中端市場貸款成長總額的一半以上。其中北卡羅來納州、南卡羅來納州、喬治亞州和阿拉巴馬州的成績最為突出。東南部地區新的中端市場關係的建立也得到了加速，今年迄今為止，我們的團隊新增的優質關係比去年同期增加了 50%。

In wealth management, our Southeast markets grew assets under management by 16% year-over-year to nearly $16 billion in total AUM. Advisor headcount is up about 15% in the same markets, which should support future growth. We also continue to see benefits from our investments in innovative tech-enabled products.

在財富管理方面，我們的東南市場管理的資產年增 16%，總資產管理規模達到近 160 億美元。同一市場的顧問人數增加了約 15%，這應該會支持未來的成長。我們也持續看到創新技術型產品的投資所帶來的效益。

In consumer, J.D. Power recently recognized the Fifth Third mobile app as number one in user satisfaction among regional banks. But we also launched an initiative to provide free will to every Fifth Third customer through an exclusive partnership with fintech, Trust & Will. We will begin to embed AI-enabled functionality into our mobile app in the second half of this year, which should further improve the user experience and reduce volumes and higher cost service channels.

在消費者方面，J.D. Power 最近將 Fifth Third 行動應用程式評為地區銀行中用戶滿意度第一名。但我們也發起了一項計劃，透過與金融科技公司 Trust & Will 的獨家合作，為每位 Fifth Third 客戶提供免費意志。我們將在今年下半年開始將人工智慧功能嵌入到我們的行動應用程式中，這將進一步改善用戶體驗並減少數量和成本更高的服務管道。

In commercial payments, our investments in our Newline embedded payments platform lead the 30% revenue growth compared to last year and an increase of more than $1 billion in commercial deposits connected to Newline services. We continue to win more business from existing clients and to see transaction migration from legacy ACH to modern instant payments rates.

在商業支付方面，我們對 Newline 嵌入式支付平台的投資帶動了營收較去年同期成長 30%，與 Newline 服務相關的商業存款增加了 10 多億美元。我們繼續從現有客戶那裡贏得更多業務，並看到交易從傳統 ACH 遷移到現代即時支付率。

During the quarter, Rippling selected Newline to be their payments infrastructure provider, joining our existing roster of blue chip fintech customers.

在本季度，Rippling 選擇 Newline 作為其支付基礎設施供應商，加入我們現有的藍籌金融科技客戶名單。

In my annual letter to shareholders this year, I reminded readers that the global economy is a complex adaptive system and the complex systems react to change in unexpected ways. These days, we are witnessing a lot of change in the short window of time. While we continue to be hopeful about the prospects for the second half of the year, we are also positioned to perform well in a broad range environments.

在今年致股東的年度信中，我提醒讀者，全球經濟是一個複雜的自適應系統，而複雜系統對變化的反應方式是意想不到的。如今，我們在短短的時間內見證了許多變化。我們對下半年的前景繼續充滿希望，同時我們也準備在廣泛的環境中取得良好的表現。

Our business mix is naturally present, our balance sheet is defensively positioned, and we have the flexibility to react quickly as conditions change. Bryan will provide more detail on our outlook, but I want to emphasize that we do not need a change in the interest rate environment or a material change in market activity to continue to produce strong profitability and organic growth.

我們的業務組合自然存在，我們的資產負債表具有防禦性定位，並且我們能夠隨著情況的變化而靈活地做出快速反應。布萊恩將提供有關我們前景的更多細節，但我想強調的是，我們不需要改變利率環境或改變市場活動來繼續實現強勁的獲利能力和有機成長。

We are raising our full-year guidance on NII given the strong first half performance. We remain very confident in achieving record NII in 2025 even if there are zero rate cuts for the remainder of the year. We will deliver 150 to 200 basis points of full-year positive operating leverage, even if the capital markets do not recover given the strong first half performance and the expense levers we have at our disposal.

鑑於上半年的強勁表現，我們提高了 NII 的全年預期。即使今年剩餘時間內沒有降息，我們仍然非常有信心在 2025 年實現創紀錄的 NII。鑑於上半年的強勁表現和我們可支配的費用槓桿，即使資本市場沒有復甦，我們也將實現 150 至 200 個基點的全年正營運槓桿。

We will resume share repurchases in the third quarter. Our capital priorities continue to be funding organic growth, paying strong dividends, and share repurchases, in that order. Our operating priorities will also remain unchanged: Stability, profitability, and growth, in that order.

我們將在第三季恢復股票回購。我們的資本重點仍是資助有機成長、支付豐厚股利和股票回購，依此順序。我們的經營重點也將維持不變：依穩定性、獲利能力和成長的順序。

Before I hand it over to Bryan, I want to say thank you to our employees for your dedication to your clients. Your commitment to getting 1% better every day is why Fifth Third was recently recognized by USA Today as a top workplace and by Forbes as best employers for new grads. And I love being part of your team.

在將工作交給布萊恩之前，我想對我們的員工對客戶的奉獻表示感謝。正是由於你們致力於每天進步 1%，Fifth Third 最近被《今日美國》評為最佳工作場所，並被《富比士》評為最適合應屆畢業生的雇主。我很高興能成為你們團隊的一員。

With that, Bryan will provide more detail on the quarter and our outlook for the second half of the year.

布萊恩將提供有關本季和下半年展望的更多細節。

Thanks, Tim. And thank you to everyone joining us today. Our second quarter results again reflected the strength and momentum of our company. On an adjusted basis, revenue increased 6% year-over-year and 5% on a sequential basis. Our stable and growing NII remains a strong contributor to our performance. We continue to realize the benefits of our diversified balance sheet and business mix for sustained low-growth, fixed rate asset repricing, and the flexibility to execute proactive liability management.

謝謝，蒂姆。感謝今天與我們一起參加的各位。我們第二季的業績再次反映了我們公司的實力和發展勢頭。經調整後，營收年增 6%，季增 5%。我們穩定且不斷成長的國家資訊基礎設施仍然是我們業績的重要貢獻者。我們繼續認識到多元化資產負債表和業務組合對持續低成長、固定利率資產重新定價以及執行主動負債管理的靈活性所帶來的好處。

Our revenue performance, combined with our ongoing expense discipline, resulted in a 10% increase in pre-provision net revenue and 250 basis points of positive operating leverage on an adjusted basis compared to the second quarter of last year.

我們的營收表現，加上我們持續的費用控制，導致撥備前淨收入與去年第二季相比成長了 10%，調整後的正營業槓桿率增加了 250 個基點。

Tangible book value per share, inclusive of the impact of AOCI grew 18% from the prior year and 5% versus the first quarter. Our investment portfolio philosophy to focus on bullet and locked up securities in order to have certainty of the cash flows continues to pay off. The unrealized loss in our (inaudible) portfolio improved 6% sequentially, despite the 10-year treasury rate being a few basis points higher than the prior quarter end. The AOCI burn-down will continue to benefit tangible book value per share growth as these positions (inaudible).

包含 AOCI 影響的每股有形帳面價值較上年成長 18%，較第一季成長 5%。我們的投資組合理念是專注於子彈證券和鎖定證券，以確保現金流的確定性，這一理念持續獲得回報。儘管 10 年期公債利率比上一季末高出幾個基點，但我們（聽不清楚）投資組合的未實現損失仍比上一季末改善了 6%。AOCI 燒毀將繼續有利於每股有形帳面價值的成長，因為這些頭寸（聽不清楚）。

Now diving further into the income statement, net interest income grew 7% from the prior year and 4% sequentially. Net interest margin expanded nine basis points sequentially. Broad-based loan growth, continued repricing benefits and deposit cost improvements all contributed to this performance. NII was also favorably impacted by the payoff of the non-performing loan, which contributed $14 million to NII and 3 basis points to NM in the quarter.

現在進一步深入研究損益表，淨利息收入比上年增長 7%，比上一季增長 4%。淨利差較上季擴大 9 個基點。廣泛的貸款成長、持續的重新定價收益和存款成本的改善都促成了這一業績。不良貸款的償還也對 NII 產生了積極影響，本季不良貸款為 NII 貢獻了 1,400 萬美元，為 NM 貢獻了 3 個基點。

Excluding that payoff impact, NII still grew by 6% from the prior year and 3% sequentially, which is at the high end of our guided range. This interest realization is an example of our proactive credit management, working with our clients to achieve loss minimization through the workout process.

除去該項收益影響，NII 仍比上年增長 6%，比上一季增長 3%，處於我們指導範圍的高端。此次利息實現是我們積極主動的信用管理的一個例子，我們與客戶合作，透過債務重組過程實現損失最小化。

As Tim highlighted, our diversified lending platforms continues to support strong balance sheet performance. Average portfolio loans grew 1% sequentially, while period-end loans were stable, despite a decrease in commercial utilization, consumer loans were up 3% on a period-end basis and 2% on an average basis from the prior quarter.

正如蒂姆所強調的，我們多元化的借貸平台繼續支持強勁的資產負債表表現。平均組合貸款較上季成長 1%，期末貸款維持穩定，儘管商業利用率下降，但消費貸款在期末成長 3%，平均較上季成長 2%。

On a period-end basis, we saw growth in every major consumer lending categories led by continued strength in our secured lending products such as auto and home equity lending. Commercial loans increased 1% on an average basis and declined 1% on a period-end basis.

從期末來看，我們看到各主要消費貸款類別均實現成長，其中汽車和房屋淨值貸款等擔保貸款產品持續走強。商業貸款平均增加1%，期末減少1%。

As I highlighted in early June, line utilization peaked around April month-end at 37.5%. Post-April, we have seen a gradual decrease to 36.5% as of June 30. Approximately 40% of the decrease in line utilization was driven by growth in commitments. In addition to the utilization trends, period-end loans were impacted by a $400 million sequential decrease in commercial construction balances as projects were refinanced into the permanent market.

正如我在 6 月初強調的那樣，線路利用率在 4 月底達到高峰 37.5%。4 月之後，我們看到這一比例逐漸下降，截至 6 月 30 日為 36.5%。線路利用率下降約 40% 是由於承諾的成長造成的。除了利用趨勢之外，由於專案被重新融資進入永久性市場，商業建築餘額連續 4 億美元減少也影響了期末貸款。

Economic uncertainty impacted client confidence and resulted at the lowest quarter of a commercial loan production over the last year. For some bright spots with continued strong production in Chicago, the Carolinas, Georgia and Alabama, while utilization has impacted balances, commitments continue to grow. Middle market pipelines have also rebounded during the quarter as our third quarter pipeline is up almost 50% from the prior quarter.

經濟不確定性影響了客戶信心，導致去年商業貸款產量降至最低。芝加哥、卡羅來納州、喬治亞州和阿拉巴馬州等地的產量持續強勁，是一些亮點，雖然利用率影響了平衡，但承諾量仍在繼續增長。中端市場管道在本季也出現反彈，因為我們第三季的管道比上一季成長了近 50%。

Shifting to deposits. Average core deposits were stable sequentially as an increase in demand deposits was largely offset by a decrease in interest checking. Our strong liquidity profile continues to provide us with the flexibility to actively manage our overall funding costs while executing tactics to grow granular insured deposits.

轉向存款。由於活期存款的增加在很大程度上被利息支票存款的減少所抵消，平均核心存款環比保持穩定。我們強大的流動性狀況繼續為我們提供靈活性，以積極管理我們的整體融資成本，同時執行增加細粒度保險存款的策略。

As a result of these efforts, interest-bearing deposit costs were down 3 basis points sequentially and 65 basis points over the last year, while we have continued to grow consumer and small business deposits, which are up 1% versus the prior year. Compared to the first quarter, demand deposit balances were up 3% on an average and in a period basis. This strong core deposit performance has allowed us to pay down over $4 billion of higher cost non-relationship broker time deposits over the last two years.

由於這些努力，計息存款成本環比下降 3 個基點，比去年下降 65 個基點，同時我們的消費者和小型企業存款繼續增長，比上年增長了 1%。與第一季相比，活期存款餘額平均和同期增加了3%。強勁的核心存款表現使我們能夠在過去兩年中償還超過 40 億美元的高成本非關係經紀人定期存款。

We will continue to prioritize high quality low cost deposits, particularly in the Southeast with our de novo investments. The most recent vantages of de novos are significantly outperforming expectations. Branches built between 2022 and 2024 are averaging over $25 million in deposit balances within the first 12 months after opening, significantly outpacing our original expectations. We remain on pace to open 50 branches this year, with 10 opened in the first half. We have now secured approximately 80% of the locations for the additional 200 Southeast branches that we announced in November of last year.

我們將繼續優先考慮高品質低成本的礦床，特別是在東南部進行新的投資。de novos 的最新優勢明顯超出預期。2022 年至 2024 年間建成的分公司在開業後的前 12 個月內平均存款餘額超過 2500 萬美元，大大超出了我們最初的預期。我們今年仍按計畫開設 50 家分行，其中上半年開設了 10 家。我們去年 11 月宣布將在東南地區增設 200 家分行，目前已確保其中約 80% 的門市。

Our deposits success, along with investment portfolio positioning, has allowed us to maintain strong balance sheet liquidity while growing loans and managing deposit costs. We ended the quarter with full category one LCR compliance at 120%, and our loan to core deposit ratio was 76%, up 1% from the prior quarter.

我們的存款成功以及投資組合定位使我們能夠在增加貸款和管理存款成本的同時保持強勁的資產負債表流動性。本季末，我們的第一類 LCR 合規率為 120%，貸款與核心存款比率為 76%，比上一季上升了 1%。

Moving on to fees. Reported non-interest income was up 8% year-over-year. These results were impacted by security gains and the impact of certain items detailed on page 4 of the release. Excluding the impact of the security gains and the other items, adjusted non-interest income for the quarter increased 3% compared to the same quarter last year. Led by growth in wealth fees, which grew 4% over the prior year due to AUM growth of $8 billion and consumer banking fees which were up 6%.

繼續討論費用。報告的非利息收入年增8%。這些結果受到安全收益和新聞稿第 4 頁詳述的某些項目的影響。剔除證券收益及其他項目的影響，本季調整後非利息收入較去年同期成長3%。財富費用的成長是主要推動力，由於資產管理規模成長 80 億美元，財富費用較前一年成長 4%，而消費者銀行費用則成長 6%。

Commercial payment fees decreased $2 million due to lower commercial card spend activity and higher earnings credits from increased demand deposit the balances, offsetting the increase in gross fee equivalent. Our embedded payments business, Newline, continued its strong growth with fees up 30%. Deposits attached Newline services increased to $3.7 billion, up $1.1 billion compared to a year ago period.

由於商業卡消費活動減少以及活期存款餘額增加帶來的收益增加，商業支付費用減少了 200 萬美元，抵消了總費用的增加。我們的嵌入式支付業務 Newline 持續保持強勁成長，費用上漲了 30%。與 Newline 服務相關的存款增加至 37 億美元，比去年同期增加了 11 億美元。

Capital markets fees were down 3% from the prior year, primarily due to the continued slowdown in M&A advisory revenue. Bond underwriting and loan syndication activity was strong during June and client appetite for transactional activity during stable market periods remains robust.

資本市場費用較前一年下降 3%，主要原因是併購諮詢收入持續放緩。6 月債券承銷和貸款銀團活動強勁，客戶對穩定市場時期交易活動的興趣仍然強勁。

The security gains of $16 million were from the mark-to-market impact of our non-qualified deferred compensation plan, which is offset in compensation expense.

1600 萬美元的證券收益來自我們的非合格遞延薪酬計劃的按市價計價的影響，該收益在薪酬費用中被抵消。

Moving to expenses. Adjusted noninterest expense was up 4% compared to the year-ago quarter and decreased 4% sequentially. The sequential comparison is impacted by seasonal items in the first quarter associated with the timing of compensation awards and payroll taxes. The previously mentioned different compensation mark-to-market increased expenses by $16 million for the quarter.

轉向開支。調整後非利息支出較去年同期成長 4%，較上一季下降 4%。連續比較受到第一季與薪資獎勵和工資稅時間相關的季節性項目的影響。前面提到的不同的薪酬以市價計算導致本季的費用增加了 1,600 萬美元。

Excluding the impact of the deferred comp mark-to-market in the quarter and in prior periods, expenses were down 5% sequentially and increased 3% compared to the prior year. The year-over-year increase in expenses due to continued investments in technology branches and sales personnel, partially being offset by the ongoing savings generated by our value stream efficiency programs.

排除本季和前期遞延以市價計算的補償費用的影響，費用較上季下降 5%，較去年同期成長 3%。由於對技術分支機構和銷售人員的持續投資，導致費用同比增長，但部分被我們的價值流效率計劃產生的持續節省所抵消。

Shifting to credit. The net charge-off ratio was 45 basis points, at the lower end of our expectations for the quarter and down one basis points sequentially. Commercial charge-offs were 38 basis points, up three basis points sequentially. Consumer charge-offs were 56 basis points, down seven basis points, primarily due to seasonal improvement in credit performance in auto and credit card.

轉向信貸。淨沖銷率為 45 個基點，處於我們對本季預期的低端，季減 1 個基點。商業沖銷為 38 個基點，比上一季增加 3 個基點。消費者沖銷額為 56 個基點，下降了 7 個基點，主要原因是汽車和信用卡信貸表現的季節性改善。

Or NPAs declined 11% sequentially, as expected, led by 18% decrease in commercial non-performers. The NPA ratio decreased 9 basis points sequentially to 72 points. Broad-based credit trends remain stable across industries and geographies despite the market and economic volatility.

或不良資產季減 11%，符合預期，其中商業不良資產下降 18%。不良資產比率季減 9 個基點至 72 點。儘管市場和經濟波動，但各行業和各地區的整體信貸趨勢仍保持穩定。

Our provision expense for the quarter included a $34 million build in our allowance for credit losses. This build was primarily attributable to the deterioration in the Moody's macroeconomic scenarios, which now project a 0.5% increase in their baseline unemployment rate projection, which is up to 4.7% by 2027. The scenario-driven increases were partially offset by improvement in the overall risk profile of the portfolio, as indicated by the reduction in NPAs. This increase in reserve build was slightly less than we expected in early June and utilization trends and commercial construction paydowns impacted period-end loan balances. The reserve build increased our ACL coverage ratio by 2 basis points to 2.09%. We made no changes to our scenario weightings during the quarter.

本季我們的撥備支出包括 3,400 萬美元的信用損失準備金。這一增長主要歸因於穆迪宏觀經濟情景的惡化，穆迪目前預測其基準失業率將上升 0.5%，到 2027 年將達到 4.7%。不良資產的減少表明，投資組合整體風險狀況的改善部分抵消了情境驅動的成長。儲備金的成長略低於我們在 6 月初的預期，利用趨勢和商業建築還款影響了期末貸款餘額。儲備金的增加使我們的 ACL 覆蓋率提高了 2 個基點，達到 2.09%。本季我們沒有對情境權重做出任何改變。

Moving to capital, we ended the quarter with a CET1 ratio of 10.6%, an increase of 13 basis points and consistent with our near-term target of 10.5%. Our pro forma CET1 ratio, including the AOCI impact of securities, is 8.6%, up 60 basis points year-over-year. We anticipate continued improvement and the unrealized losses in our securities portfolio, given that approximately 63% of the fixed rate securities in our AFS portfolio are in bullet and locked structures, which provides a high degree of certainty to our principle cash flow expectation.

談到資本，本季末我們的 CET1 比率為 10.6%，增加了 13 個基點，與我們 10.5% 的近期目標一致。我們的備考 CET1 比率（包括證券的 AOCI 影響）為 8.6%，較去年同期上升 60 個基點。我們預計我們的證券投資組合將繼續改善，未實現損失也將減少，因為我們的 AFS 投資組合中約 63% 的固定利率證券是子彈式和鎖定結構，這為我們的主要現金流量預期提供了高度的確定性。

Moving to our current outlook. With the continued momentum from the second quarter, we remain confident in our ability to achieve record NII and full-year positive operating leverage approaching 2%. We now expect full year NII to increase to 5.5% to 6.5%, up from our earlier guide. This outlook uses the forward curve at the start of July, which assume 25 basis point rate cuts in September, October, and December. Due to the resiliency of our balance sheet, we expect to achieve record NII and our updated full-year guide with no further loan growth and no rate cuts.

轉向我們當前的展望。憑藉第二季的持續成長勢頭，我們仍然有信心實現創紀錄的 NII 和接近 2% 的全年正營運槓桿。我們現在預計全年 NII 將增至 5.5% 至 6.5%，高於我們先前的預期。本展望採用了 7 月初的遠期曲線，假設 9 月、10 月和 12 月利率分別下調 25 個基點。由於我們的資產負債表具有彈性，我們預期在貸款不再成長、利率不再降低的情況下，實現創紀錄的淨利息收入和更新後的全年指引。

Full-year average total loans are expected to be up 5% compared to 2024, with the increase primarily driven by C&I and auto lending production. Our cash position, securities portfolio, and commercial line utilization should remain relatively stable throughout the remainder of 2025.

預計全年平均貸款總額將比 2024 年成長 5%，成長主要受工商業和汽車貸款產量推動。在 2025 年剩餘時間內，我們的現金狀況、證券投資組合和商業線路利用率應保持相對穩定。

Full-year adjusted non-interest income is expected to be up 1% to 2% as the muted capital market trends are offset by continued growth in other three categories. We now expect full-year adjusted noninterest expense to be up 2% to 2.5% compared to 2024. We will continue to execute our growth plans with Southeast branch builds and salesforce additions in middle market, commercial payments, and wealth.

由於其他三個類別的持續成長抵消了資本市場低迷的趨勢，預計全年調整後非利息收入將增加 1% 至 2%。我們現在預計，全年調整後的非利息支出將比 2024 年增加 2% 至 2.5%。我們將繼續執行我們的成長計劃，建立東南分支機構並增加中端市場、商業支付和財富領域的銷售人員。

In total, our guide implies full-year adjusted revenue to be up 4% to 4.5% and PPNR to grow around 7%.

總體而言，我們的預期是全年調整後營收將成長 4% 至 4.5%，PPNR 將成長 7% 左右。

Moving to credit, we are tightening the range for full-year net charge-offs to 43 to 47 basis points. The timing of charge-offs for individual credits may impact a particular quarter, but the midpoint of our full-year expectations remains consistent with our beginning of the year guide.

談到信貸，我們將全年淨沖銷範圍收緊至 43 至 47 個基點。個別信用沖銷的時間可能會影響特定季度，但我們全年預期的中點仍與年初的指導保持一致。

Moving to our outlook for the third quarter. We expect NII to be up 1% from the second quarter due to the benefits from fixed rate asset repricing and day count. We expect average total loan balances to be stable to up 1% due to strengthening C&I pipelines and continued broad-based momentum and consumer loans. Excluding the impact of the security gains, we expect adjusted noninterest income to be up 1% to 4%.

轉向我們對第三季的展望。我們預計，由於固定利率資產重新定價和天數計算的好處，NII 將較第二季成長 1%。我們預計，由於工商通路的加強以及持續的廣泛成長動能和消費貸款，平均總貸款餘額將穩定成長 1%。排除證券收益的影響，我們預計調整後的非利息收入將增加 1% 至 4%。

Third quarter adjusted noninterest expense is expected to be up 1% compared to the second quarter as we continue to invest. We expect third quarter charge-offs to again be in the 45- to 49-basis-point range.

由於我們持續投資，預計第三季調整後的非利息支出將比第二季增加 1%。我們預計第三季的沖銷額將再次達到 45 至 49 個基點的範圍內。

Turning to capital, we will continue to target our CET1 ratio at 10.5%. Based on our current projections for balance sheet growth, we expect to repurchase $400 million to $500 million of stock during the remainder of 2025. We continue to prioritize organic loan growth over share repurchases in order to deliver the best long-term returns for our shareholders.

談到資本，我們將繼續將 CET1 比率定為 10.5%。根據我們目前對資產負債表成長的預測，我們預計在 2025 年剩餘時間內回購 4 億至 5 億美元的股票。我們繼續優先考慮有機貸款成長而不是股票回購，以便為股東帶來最佳的長期回報。

In summary, we expect to maintain our momentum in the second half of the year and achieve record NII, positive operating leverage, and strong returns in an uncertain environment. All while continuing to invest for the long term.

綜上所述，我們預計下半年我們將保持成長勢頭，並在充滿不確定性的環境中實現創紀錄的淨利息收入、正的經營槓桿和強勁的回報。同時繼續進行長期投資。

With that, let me turn it over to Matt to open up the call for Q&A.

接下來，請容許我把時間交給馬特開始問答環節。

Thanks, Bryan. Before we start Q&A, given the time we have this morning, we ask that you limit yourself to one question and one follow-up and then return to the queue if you have additional questions. Operator, please open the call for Q&A.

謝謝，布萊恩。在我們開始問答之前，考慮到我們今天上午的時間，我們要求您將自己限制為一個問題和一個後續問題，然後如果您還有其他問題，請返回隊列。接線員，請打開電話問答。

(Operator Instructions)

（操作員指示）

Ebrahim Poonawala, Bank of America.

美國銀行的 Ebrahim Poonawala。

Good morning. I guess maybe, Tim, just thinking about capital allocation. I heard Bryan talk about the buyback appetite for the back half of the year. But just talk to us around how you're thinking about deployment of capital. Clearly, we saw one of your competitors announce a bank deal earlier this week. Any sense of strategically, even if you think about bank M&A picking up, are there characteristics that (inaudible) these markets of a bank that we should be thinking about as shareholders of (inaudible)? Any perspective would be helpful. Thank you.

早安.我想也許，提姆，只是在考慮資本配置。我聽到布萊恩談論了今年下半年的回購意願。但請告訴我們您對資本配置的看法。顯然，我們看到您的一位競爭對手本週早些時候宣布了一項銀行交易。從策略角度來看，即使您認為銀行併購正在興起，我們身為銀行股東是否應該考慮這些銀行市場的特徵（聽不清楚）（聽不清楚）？任何觀點都會有幫助。謝謝。

That's a great question. I think from my point of view, the capital priorities of the bank are always going to be organic growth first because, A, organic growth is completely within our control; and B, the thing that makes you a good acquirer is the ability to run your core business effectively. The priority here is always going to beat around the company to gain share on an organic basis and to make sure that there's adequate capital available to that, in addition to ensuring that we provide that stable and overtime growing dividend and that we're able to support the capital return to investors in periods where we have excess capital through share repurchases.

這是一個很好的問題。我認為，從我的角度來看，銀行的資本優先事項始終是有機增長，因為：A，有機增長完全在我們的控制範圍內；B，讓你成為一個好的收購者的因素是有效地運營核心業務的能力。這裡的首要任務始終是讓公司在有機基礎上獲得份額，並確保有足夠的資本可用，此外還要確保我們提供穩定且隨著時間推移而增長的股息，並且能夠在我們擁有過剩資本的時期通過股票回購來支持投資者的資本回報。

And I wasn't surprised to see the announcement earlier this week. I think I said for a while that was going to be more consolidation, I think the banking sector in the U.S. is the least consolidated industry and our banking sector is the least consolidated banking sector in the world. So there is going to continue to be more of that.

本週早些時候看到這個公告我並不感到驚訝。我想我曾經說過，這將會是更加整合的，我認為美國的銀行業是整合程度最低的行業，而我們的銀行業是世界上整合程度最低的銀行業。因此，這樣的事情還會繼續發生。

What I know to be true, though, is that M&A is a means to achieve a strategic outcome. It shouldn't be a strategy unto itself. There isn't an industrial logic to scale that I think holds in all sectors. But it's not just any kind of scale. Imagine us as being in a military conflict where we have to fight an enemy that was 10 times our size, you would never march out into an open field single file and try to face a larger army. You would pick your spots. You would try to use the terrain to your advantage, you'd get (inaudible), and you'd not be able to scale advantages that the competitor has.

但我知道的是，併購是實現策略成果的手段。它本身不應該是一種策略。我認為，並不是所有產業都存在著一種可以擴大規模的工業邏輯。但它並不是任何一種規模。想像一下，我們身處一場軍事衝突中，必須與比我們強大 10 倍的敵人作戰，你絕不會排成一列縱隊進入開闊地並試圖面對一支規模更大的軍隊。你會選擇你的位置。你會嘗試利用地形來獲得優勢，但你會得到（聽不清楚），你將無法擴大競爭對手的優勢。

And if you think about the structure of the banking system in the U.S., I think that is the way to think about how you win. We're going to be way more successful building 350 branches in a single region in the U.S than we would be if we built three or four branches in the 100 largest cities in the U.S.

如果你考慮美國銀行體系的結構，我認為這就是思考如何取勝的方法。在美國單一地區建立 350 個分支機構比在美國 100 個最大城市建立 3 到 4 個分支機構要成功得多。

And the focus for us is always going to be on density. It's going to be on the ability to drive organic growth by spreading the cost of customer acquisition across multiple product lines. And the relationship value that you get from the ability to deliver a broad range of products and services to customers is really important to us.

我們的重點始終是密度。它將依靠將客戶獲取成本分攤到多個產品線上來推動有機成長的能力。透過向客戶提供廣泛的產品和服務而獲得的關係價值對我們來說非常重要。

And it's always going to be focused on ensuring that you have a sort of continuity in, people say culture, but really, in the mode and how you operate your business because there just are a lot of things out there that operate very differently than we do.

而且我們始終會專注於確保企業在文化方面具有某種連續性，但實際上，這體現在模式和業務運作方式上，因為外面有很多事情的運作方式與我們截然不同。

Appetite is the same. We wouldn't have much conviction if one deal announcement changed our outlook on how to deploy capital. But the focus is going to be on delivering our strategy in the mode that is most effective for shareholders.

食慾也一樣。如果一項交易公告就改變了我們對如何配置資本的看法，我們就不會有太大的信心。但重點將放在以對股東最有效的方式實施我們的策略。

That's good color. Thank you. And I guess maybe just a separate question. Obviously, your charge-offs range narrowed, but as we think about the impact of the tax bill on the residential solar panel industry, just give us how you are handicapping any potential (inaudible) your exposure? And the business strategy from here going forward and dividend? Thank you.

這顏色真好。謝謝。我想這可能只是一個單獨的問題。顯然，您的沖銷範圍縮小了，但當我們考慮稅收法案對住宅太陽能板產業的影響時，請告訴我們您是如何限制任何潛在的（聽不清楚）風險的？那麼未來的商業策略和股利是什麼？謝謝。

Yeah. Ebrahim, it's Bryan. Thanks for the question. I guess, first, I'll just recap what's happened. The taxable eliminated the tax credits on the residential solar lending business starting in January 2026. So what does that mean for us? First, this has no impact on our existing solar portfolio. Our customers have already earned their tax credits, so no impact on that.

是的。易卜拉欣，我是布萊恩。謝謝你的提問。我想，首先，我來回顧一下發生的事情。從2026年1月開始，應稅取消了住宅太陽能貸款業務的稅收抵免。那麼這對我們意味著什麼？首先，這對我們現有的太陽能組合沒有影響。我們的客戶已經獲得了稅收抵免，因此這不會產生影響。

From a credit perspective, we believe that the dividend charge-offs have peaked in the second quarter. And as you can see from our NPA and delinquency trends in the first half of the year, the risk profile, the solid portfolio continues to improve. All the enhancements we've done to this business that we've made to our plan form installer management program and solid dollar coverage, joint borrower, collections enhancements, it's all helped to drive this credit improvement.

從信貸角度來看，我們認為股利沖銷在第二季已達到高峰。從我們上半年的不良資產和拖欠趨勢可以看出，風險狀況和穩健的投資組合持續改善。我們對這項業務所做的所有改進，包括我們的計劃形式安裝程序和固定美元覆蓋範圍、聯合借款人、收款增強功能，都有助於推動信用改善。

We expect net solar charge-offs to decrease 15% to 20% in the third quarter from the second quarter level and decrease again in 2026 by another 15% to 20%.

我們預計第三季太陽能淨沖銷額將比第二季下降 15% 至 20%，2026 年將再次下降 15% 至 20%。

Next, the tax that will impact future originations. As the tax credit associated with the residential solar leasing product was extended to the end of 2027, this will create an uneven playing field in the solar finance industry for about two years. We expect the least (inaudible) volume to increase while solar loans will decrease significantly.

接下來，稅收將影響未來的起源。由於與住宅太陽能租賃產品相關的稅收抵免延長至2027年底，這將在約兩年內造成太陽能金融業不公平的競爭環境。我們預計（聽不清楚）交易量將會增加，而太陽能貸款將大幅減少。

As a result, we think that our 2026 solar originations are probably down 70% to 80% from 2025 at levels. While we were hopeful to have a level playing field in 2026 where both products are treated equally, we'll at least see that occur in 2028.

因此，我們認為 2026 年的太陽能發電量可能比 2025 年下降 70% 至 80%。雖然我們希望在 2026 年有一個公平的競爭環境，兩種產品都能得到平等對待，但我們至少會在 2028 年看到這種情況發生。

Now, how are we responding? We've been innovating to create a home equity product that we expect to launch in the first quarter of 2026 on the dividend platform. While this product will not have a tax credit, it will allow borrowers to own their solar panels and generate tax deductible interest, which should matter some homeowners. The home equity product will also improve the third collateral position from a UCC to a second lien. This product should also be appealing for other home improvement projects.

現在，我們如何應對？我們一直在創新，打造一款房屋淨值產品，預計將於 2026 年第一季在股息平台上推出。雖然該產品不提供稅收抵免，但它允許借款人擁有自己的太陽能電池板並產生可抵稅的利息，這對一些房主來說很重要。房屋淨值產品也將第三抵押品地位從 UCC 提升為第二留置權。該產品對於其他家居裝修項目也具有吸引力。

So while we believe the solar originations will be down in 2026, with the new home equity product, combined with other enhancements we've made in our dividend home improvement lending platform, we expect continued growth of our dividend loans in the low single digits next year.

因此，雖然我們相信 2026 年太陽能貸款發放量將會下降，但隨著新的房屋淨值產品的推出，加上我們在股息家居裝修貸款平台上所做的其他改進，我們預計明年股息貸款將繼續以較低的個位數增長。

Yeah. Just to put a point on one of the things Bryan said strategically, Ebrahim, the interest we had in home improvement as a category predates the acquisition and dividend by several years (inaudible) has always been a home equity bank. But we also did the partnership with GreenSky back in 2015 or 2016, I don't remember when it was. And I think what we learned as we spent time in home improvement is that the place that banks can play uniquely is relative to (inaudible) and non-bank lenders is in the larger and more complex home improvement programs, things that will require multiple draws, that involve a prime in a series of subs. And what fintechs can do in those markets is to finance the windows or thet doors. They can finance the whole kitchen range for a full renovation.

是的。只是為了強調布萊恩在策略上所說的一件事，易卜拉欣，我們對家居裝修這一類別的興趣早於收購和分紅幾年（聽不清楚）一直是一家房屋淨值銀行。但我們也在 2015 年或 2016 年與 GreenSky 建立了合作關係，我不記得是什麼時候了。我認為，我們在家庭裝修方面所花的時間了解到的是，銀行可以發揮的獨特作用是相對於（聽不清楚）和非銀行貸款機構而言的，即在更大、更複雜的家庭裝修項目中，這些項目需要多次提款，涉及一系列子項目中的首期貸款。金融科技在這些市場中可以做的就是為窗戶或門提供融資。他們可以資助整個廚房的全面翻新。

So what we like to now dividend, in addition to believing in the importance of distributed power generation and storage which, by the way, we still believe is an important part of the way they want to be resolved the energy demand we have in the U.S. is the fact that solar is one of the most complex home improvement installations between the need for their reinforcement and retain the installation of the panels, the high-voltage electrical, and then working with the power companies to get permission to operate.

因此，除了相信分散式發電和儲存的重要性之外，我們現在喜歡的紅利是，順便說一句，我們仍然認為這是解決美國能源需求的重要組成部分，因為太陽能是最複雜的家居裝修裝置之一，需要加固和保留面板的安裝、高壓電氣，然後與電力公司合作以獲得營運許可。

So it's going to provide a really nice exoskeleton, and that's always been the dream, to be able to deliver at home equity to a broader range of projects. And in fact, today, even prior to the sort of it expected reduction in solar volumes that Bryan mentioned, 25%, 30% of new originations are home improvement, non-solar related. So there is a good core business. And what is going to happen is the origination volumes using home. So I think our view is the dividends probably going to grow in line with the balance sheet as opposed to growing at a faster rate on a go-forward basis, meaning, call it low to mid single digits as a point of focus for us.

因此，它將提供一個非常好的外骨骼，這一直是我們的夢想，能夠為更廣泛的項目提供房屋淨值。事實上，今天，甚至在布萊恩提到的太陽能預期減少之前，25% 到 30% 的新項目都是與太陽能無關的家居裝修。因此，有一個好的核心業務。接下來將會發生的情況是使用家庭的起源卷。因此，我認為我們的觀點是股息可能會與資產負債表同步增長，而不是在未來以更快的速度成長，這意味著，我們關注的重點是低到中等個位數。

But as Bryan said, the credit trends are incredibly encouraging and I think they underline the comments that we've been making about focusing on the best quality installers and on super prime credit. So we're just not seeing the deterioration that folks who are full-spectrum lenders have had to struggle with.

但正如布萊恩所說，信貸趨勢令人難以置信地鼓舞人心，我認為它們強調了我們一直以來關於關注最優質的安裝人員和超級優質信貸的評論。因此，我們並沒有看到全方位貸款機構所面臨的困境。

Very comprehensive. Thank you, both.

非常全面。謝謝你們兩位。

Scott Siefers, Piper Sandler.

史考特·西佛斯、派珀·桑德勒。

Good morning, guys. Thanks for taking the question. Bryan, I wanted to ask, on the margin improvement, even if we adjust for the benefit of the NPA that you discussed in your prepared remarks, much better than you had articulated might be the case earlier this year. I think we can see on slide 5 kind of what's happening between quarters. But I guess just in your view, what's coming in better than you might have anticipated earlier this year? And what are we thinking about the pace of improvement opportunity looking ahead? And then I guess the follow-up, I was hoping you might be able to in your response to sort of address what you see as competitive dynamics on both the loan and deposit side, rational, irrational, et cetera?

大家早安。感謝您回答這個問題。布萊恩，我想問一下，關於利潤率的提高，即使我們根據您在準備好的發言中討論過的 NPA 的利益進行調整，情況也可能比您今年早些時候所闡述的要好得多。我想我們可以在第 5 張投影片上看到各季度之間發生的情況。但我想，在您看來，今年的情況會比您早些時候預期的更好嗎？展望未來，我們對改進機會的步伐有何看法？然後我想問的是後續問題，我希望您能夠在回答中談談您所看到的貸款和存款方面的競爭動態，理性的、非理性的等等？

Thanks, Scott. Great question. I would tell you the big thing that I think was the outperformance item outside of the NPA payoff was the DDA performance we've seen. We were expecting to be able to transition back into growth mode on DDA now that the interest rate environment has been stable for a period of time. But we saw a really strong performance this quarter. That certainly was a big driver of our success.

謝謝，斯科特。好問題。我想告訴你的是，我認為除了 NPA 收益之外，表現優異的最大因素是我們看到的 DDA 表現。我們預計，由於利率環境已經穩定了一段時間，DDA 將能夠重新轉入成長模式。但本季我們看到了非常強勁的表現。這無疑是我們成功的一大推動力。

And we continue to feel really good about our ability to have gotten cost out of our deposit book while continuing to improve the competition. I think that's probably an underappreciated thing about what we've been able to do over the last years, just how much we've been able to strengthen the deposit base, especially with growth in the consumer small business sector.

我們對自己能夠降低存款成本並繼續提高競爭力的能力感到非常滿意。我認為這可能是我們過去幾年所取得的成就中被低估的一點，我們在多大程度上加強了存款基礎，特別是隨著消費者小型企業領域的成長。

From a NIM perspective, we continue to feel like we did earlier this year, which is 2 to 3 basis points of NIM improvement each quarter, driven by fixed rate asset repricing continuing as well as loan growth. It's really just going to be kind of the core blocking and tackling and improvement of the business over time. So nothing dramatic there.

從淨利差 (NIM) 角度來看，我們繼續感受到與今年早些時候類似的情況，即每個季度淨息差 (NIM) 改善 2 至 3 個基點，這得益於固定利率資產持續重新定價以及貸款增長。這實際上只是隨著時間的推移對業務進行核心阻止、解決和改進的一種方式。所以沒有什麼戲劇性的事情。

And like you said, if we adjust for the 3 bps from the interest recovery, we'd be more in line with the (inaudible) NIM. And that 3 bps a quarter puts us right where we expected to be at the end of the year in that kind of mid-teens range. So 3.15-ish feels right, still very achievable. So I feel very good about the trajectory from here.

正如您所說，如果我們根據利息回收的 3 個基點進行調整，我們將更符合（聽不清楚）NIM。每季 3 個基點的成長速度使我們達到了我們預期的年底中段水準。因此 3.15 左右感覺不錯，仍然很容易實現。因此我對今後的發展軌跡感到非常滿意。

From a competitive landscape perspective, our industry is always very competitive. I don't think I would actually really call out much that we're seeing on either the loan or the deposit side at this point. Spreads look in line with what we've been seeing over the last 6 to 12 months across almost every asset class on the lending side. And deposit competition has been very, very rational. We've seen great success in continuing to be able to find growth in the right profits and improving the deposit base.

從競爭格局來看，我們的產業始終競爭非常激烈。我認為我實際上不會真正說出我們目前在貸款或存款方面看到的很多情況。利差看起來與我們過去 6 至 12 個月看到的貸款領域幾乎所有資產類別的利差一致。存款競爭一直都非常非常理性。我們在繼續尋找正確的利潤成長和改善存款基礎方面取得了巨大的成功。

Perfect. All right. Good. Thanks very much, Bryan.

完美的。好的。好的。非常感謝，布萊恩。

Ryan Nash, Goldman Sachs.

高盛的瑞安·納許。

Hey. Good morning, everyone.

嘿。大家早安。

Hey long-time listener, first-time caller.

嘿，長期聽眾，第一次打電話的人。

Is this a sports radio talk?

這是體育廣播談話嗎？

I wish.

我希望。

Tim, maybe outside of the movement in utilization. We're obviously some signs of loan growth improving. You talked about investments to support loan growth, the lenders up 11%, outlook sounds (inaudible). Maybe you can just talk more specifically about your expectations for loan growth. And as you're out talking to corporates, do you feel they've gotten confident enough to start making big investment decisions and borrowing more? Thank you and I have a follow-up.

提姆，也許在利用運動之外。我們顯然看到了一些貸款成長改善的跡象。您談到了支持貸款成長的投資，貸款成長了 11%，前景樂觀（聽不清楚）。也許您可以更具體地談談您對貸款成長的預期。當您與企業交談時，您是否覺得他們已經有足夠的信心開始做出重大投資決策並借入更多資金？謝謝，我會跟進。

Great question. So let me take it by category. On the consumer side of the equation, the thing that gives us confidence is the diversity of the loan origination platforms. We have long been believers that while residential mortgage is really important product for us to offer to consumers, it wasn't a great balance sheet asset. And the byproduct of that is between what we're able to do in home improvement, what will be continued expansion in home equity, which has been an important driver of our growth.

好問題。那麼讓我按類別來討論。從消費者角度來看，貸款發放平台的多樣性讓我們充滿信心。我們一直堅信，雖然住宅抵押貸款是我們向消費者提供的非常重要的產品，但它並不是一個很好的資產負債表資產。其副產品就是我們在家居裝修方面所做的努力，以及房屋淨值的持續擴大，這一直是我們成長的重要驅動力。

And the fact that the risk-adjusted spreads in the auto business are great right now, we just feel very confident in our ability to continue to generate what will be broad-based in a market, plus a point or two toward a growth out of the consumer side of the business. And that provides a lot of ballast for us as you look at the uncertainty that exists in the corporates.

事實上，目前汽車業務的風險調整利差很高，我們對自己繼續在市場中創造廣泛基礎的能力充滿信心，並且在業務的消費者方面實現一兩個點的增長。當你看到企業中存在的不確定性時，這為我們提供了許多安慰。

I mean, the positives, when you talk to customers on the commercial side of the equation and at the moment, are one, there is a general belief that as we continue to navigate uncertainty around trade and the tariff levels that there's value to them in running with a little bit of extra inventory and that supports utilization.

我的意思是，當你從商業角度與客戶交談時，目前的積極因素是，人們普遍認為，隨著我們繼續應對貿易和關稅水平的不確定性，使用少量額外庫存對他們來說是有價值的，這有利於提高利用率。

We're not seeing the big buys that we saw in the first quarter that drove up utilization for us. But we do hear some clients that may, at the moment, are preferring to run loan (inaudible) a little bit more inventory than they otherwise would have carried just to compensate for any short-term disruptions in supply chains?

我們並沒有看到第一季出現的大宗採購，從而提高我們的利用率。但我們確實聽說有些客戶目前可能更願意借出（聽不清楚）比他們原本持有的庫存多一點的庫存，只是為了彌補供應鏈中的任何短期中斷？

Second, the bonus depreciation, accelerated depreciation, schedule and capital equipment, it is in some pockets in our customer base generating real interest in replacing equipment. It felt last year in the second half of the year and particularly like the U.S., we've under-invested a little bit in capital equipment purchases. We heard from clients who had rental businesses, yellow metal rental businesses and otherwise, that there'd been a big boom in rental demand as people tried to buy time to ensure that they got the benefit of the taxes. So I think that is a positive catalyst.

其次，獎金折舊、加速折舊、計畫和資本設備，在我們的客戶群中，有些部分對更換設備產生了真正的興趣。去年下半年的情況與美國類似，我們在資本設備採購上投資不足。我們從從事租賃業務、黃金租賃業務和其他業務的客戶那裡聽說，租賃需求大幅增長，因為人們試圖爭取時間以確保稅收優惠。所以我認為這是一個積極的催化劑。

The element that just hasn't come through, and that's reflected in middle market M&A activity everywhere is the M&A-driven demand. At some point, there should be a little bit of a capitulation where either the sellers accept that with higher interest rates being maybe a more permanent phenomenon that they need to see buyer pricing expectations where you have buyers who have been patient and conclude that this is the time to go. But that's really the third leg of the stool between the capital purchases, the inventories, and then eventually, some M&A.

尚未實現的因素是併購驅動的需求，這反映在各地的中端市場併購活動。在某個時候，應該有一點讓步，要么賣家接受更高的利率可能是一個更持久的現象，他們需要看到買家的定價預期，而買家一直很耐心，並得出結論，現在是時候離開了。但這實際上是資本購買、庫存以及最終的一些併購之間的第三條腿。

Got it. And given your comments from before, you talked about identifying 80% of the locations in the Southeast, 150 to 200 basis points of operating leverage, I guess, given the success that you're seeing in your business plus the success in the Southeast, does it make sense to accelerate your efforts here from some inorganic perspective? And just how are you thinking about the pacing of your growth initiatives from here? Thank you.

知道了。鑑於您先前的評論，您談到確定東南部 80% 的地點，150 到 200 個基點的營運槓桿，我想，鑑於您在業務中看到的成功以及在東南部取得的成功，從某種無機角度加快這裡的努力是否有意義？您如何考慮今後的成長計畫的步伐？謝謝。

Yes. I think somewhere, Jamie Leonard is grinning like a Cheshire cash right now because we have been running like -- the years that I was at a consumer bank many years ago, the best we were ever able to do is to open 25 to 30 branches in any individual year. And they're running at a pace of 50 to 60 a year at this stage. So we have doubled the effort there.

是的。我想，在某個地方，傑米·倫納德 (Jamie Leonard) 一定正咧嘴大笑，因為我們一直在運營——多年前我在一家消費銀行工作時，我們所能做的最好的事情就是在任何一年開設 25 到 30 家分行。目前，他們每年的跑步速度為 50 到 60 次。因此我們加倍努力。

The other thing that we've invested in we haven't spent a lot of time talking about is a big boost in the sophistication of our direct marketing capabilities (inaudible) support that there is a way that we bootstrap the de novos and get a lot of early growth in terms of households and deposit balances.

我們投資的另一件事，我們還沒有花很多時間談論，那就是大大提高我們的直接行銷能力的複雜性（聽不清楚）支持我們有一種方法可以引導新事物，並在家庭和存款餘額方面獲得大量的早期增長。

So we are accelerating the investments in those markets to the extent that we find a way to go $65 a year, I would love it. Just what we have been unwilling to do is to compromise on the quality of the locations. And then there's nothing that we can do as it relates to the pacing on getting through local zoning jurisdictions and otherwise. So if we have the ability to get 60 done a yeac, we're going to get 60 done a year for certain.

因此，我們正在加快對這些市場的投資，如果我們能找到一種方法將投資額提高到每年 65 美元，我會非常高興。我們一直不願意做的就是在拍攝地點的品質上妥協。然後，我們就無能為力了，因為這與透過當地分區管轄權和其他方面的步伐有關。因此，如果我們有能力每年完成 60 個，那麼我們肯定每年就能完成 60 個。

Got it. Thanks for taking the questions. Thank you.

知道了。感謝您回答這些問題。謝謝。

Gerard Cassidy.

杰拉德·卡西迪。

Good morning. This is (inaudible), standing in for Gerard. Given other recent headlines, can you just give us your thoughts on stablecoins and how broader adoption could impact both your payments business and deposit levels?

早安.這是（聽不清楚），代替傑拉德。鑑於最近的其他頭條新聞，您能否談談您對穩定幣的看法，以及更廣泛的採用將如何影響您的支付業務和存款水平？

Yes. Happy to do that. I happen to be pretty excited about the prospects for stablecoins, but maybe not in the same places that are getting a lot of the headlines these days. We have a little bit of an advantage here in that we bank a couple of the largest infrastructure providers to the crypto and particularly the stablecoin sector for a few years now. And we've been able to watch the use cases that have evolved on those platforms and get a sense for it.

是的。很高興這樣做。我剛好對穩定幣的前景感到非常興奮，但可能與如今佔據頭條新聞的領域不同。我們在這方面有一點優勢，因為我們幾年來一直為加密貨幣，特別是穩定幣領域最大的幾家基礎設施提供者提供銀行服務。我們已經能夠觀察這些平台上不斷發展的用例並對其有所了解。

We also have an interesting asset that a lot of the other banks don't have in the Newline platform, which is really well architected to be able to support both payments and the intra-day liquidity activity that's required to make stablecoin to work. As both (inaudible) payment rails.

我們在 Newline 平台上還擁有許多其他銀行所沒有的有趣資產，該平台的架構非常好，能夠支援支付和穩定幣運作所需的日內流動性活動。由於兩種（聽不清楚）付款方式。

Our interest there, one, where there are companies that have compliance infrastructure and the operational robustness to bank and there are things that we will do there, whether that relates to reserve accounts for payment rails and otherwise.

我們感興趣的是，那裡有擁有合規基礎設施和銀行營運穩健性的公司，我們會在那裡做一些事情，無論這是否與支付軌道的儲備帳戶有關。

But then secondarily, as a user of stablecoins, I think in particular and some of the cross-border payments and cross-platform settlement applications that are out there, banks like us who aren't U.S. domestic banks have been outsourcing that cross-border payment activity to correspondent bank. So that's a greenfield. And anything that we can do, even if it's disruptive in terms of the margins, is a net positive for us. So I'm quite excited about that as a potential use case for our clients.

但其次，作為穩定幣的用戶，我認為特別是一些現有的跨境支付和跨平台結算應用程序，像我們這樣不是美國國內銀行的銀行已經將跨境支付活動外包給代理銀行。那是一片綠地。我們所做的任何事情，即使會破壞利潤率，對我們來說都是有利的。因此，我對此感到非常興奮，因為這對我們客戶來說是一個潛在的用例。

I think the thing that's gotten a lot of the attention that I don't believe in is the risk that stablecoins pose or don't pose point of sale payments and to domestic payments in general. And I think the reason that the media has been wrong on this one is that there isn't such a focus on the cost and the credit card acceptance when cash, cheque, ACH, and debit are all already price competitive and all already basically universally accepted.

我認為引起廣泛關注但我不相信的事情是穩定幣對銷售點支付和一般國內支付構成或不構成的風險。我認為媒體在這個問題上出現失誤的原因是，當現金、支票、ACH 和借記卡都已經具有價格競爭力並且基本上已被普遍接受時，媒體並沒有那麼關注成本和信用卡的接受度。

And so the reason that people accept credit cards is because consumers want to use credit cards. And the reason consumers want to use credit cards is because they either need the liquidity that the credit line provides or because they want the rewards. And the stablecoin rails today don't offer either of those features. And if they get added, they're going to have to increase the cost of acceptance in order to offset the costs of providing the liquidity or the cash back rewards or otherwise.

人們接受信用卡的原因是因為消費者想要使用信用卡。消費者之所以想要使用信用卡，要么是因為他們需要信用額度提供的流動性，要么是因為他們想要獲得獎勵。而現今的穩定幣軌道並不提供這兩種功能。如果他們被加入，他們將不得不增加接受成本，以抵消提供流動性或現金回饋獎勵或其他方面的成本。

So stablecoins in markets with unstable central banks or not a broad-based banking system, absolutely and interesting application internationally, stablecoins for cross-border payment, or for collateral and (inaudible) exchanges, interesting use case, domestic payments, I think there's probably more smoke and fire on that one right now.

因此，在央行不穩定或沒有廣泛銀行體系的市場中，穩定幣在國際上絕對是一個有趣的應用，用於跨境支付或抵押品和（聽不清楚）交易的穩定幣，有趣的用例，國內支付，我認為現在這方面可能存在更多的爭議。

Okay. Thank you. That's helpful color. And then just lastly, it appears expected regulatory relief for the industry will potentially have a pretty big impact on at least the money center banks, evidenced by the recent stress test results in their resulting stress capital buffers. Can you just share your thoughts on the potential benefits specifically for Fifth Third from the expected regulatory relief we might see over the next year or so?

好的。謝謝。這是很有幫助的顏色。最後，預計行業監管放鬆將至少對貨幣中心銀行產生相當大的影響，最近的壓力測試結果及其產生的壓力資本緩衝就證明了這一點。您能否分享一下您對於未來一年左右可能出現的監管放鬆政策對 Fifth Third 帶來的潛在好處的看法？

Yes, absolutely. I think if you ask Tim Spence from 2023 or 2024 if I would regret not voluntarily submitting to an additional stress test, I would've thought that you were crazy. But at the moment, I wish that all banks had undergone the stress test this last time around because it probably would've help you all to understand the benefits that will accrete to regional banks in addition to the big money center guys. The stress testing release is going to be beneficial for everybody. The opacity of that process in the models that were used are just not helpful. And we're believers that transparency is a good thing. And I think you saw the potential upside that the regional banks will get in the form of capital relief from more rational scenarios and better-suited models and otherwise. And I expect us to see a benefit from that.

是的，絕對是。我想，如果你在 2023 年或 2024 年問蒂姆·斯賓塞是否會後悔沒有自願接受額外的壓力測試，我會認為你瘋了。但目前，我希望所有銀行都經歷過最後一次壓力測試，因為它可能會幫助大家了解除了大型貨幣中心之外，區域銀行還將獲得哪些好處。壓力測試的發布將對每個人有益。所用模型中該過程的不透明性根本無濟於事。我們相信透明度是件好事。我認為您看到了區域性銀行將從更合理的情景和更適合的模型等中獲得資本減免的潛在好處。我希望我們能從中受益。

We obviously will benefit from a step away from gold plating on Basel III from a more risk-based view of the liquidity rules that were originally proposed. And I have been quite encouraged by government moments, speeches as it relates to the evolutions and supervisory approach across the bank regulators.

從最初提出的流動性規則的角度看，如果我們不再對巴塞爾協議 III 進行鍍金，顯然會受益匪淺。政府有關銀行監管機構的演變和監管方法的演講和講話令我深受鼓舞。

And then lastly, Bryan mentioned earlier that was an encouraging sign that one of our peers announced M&A transaction and expect a six-month approval and close, like that's evidence of a well-oiled regulatory review process.

最後，布萊恩之前提到，這是一個令人鼓舞的信號，我們的一位同行宣布了併購交易，並預計在六個月內獲得批准和完成，這證明監管審查流程運作良好。

All that said, I just want everybody to remember that there's another side to this. It's just not just the banks that are seeing regulatory relief. There are a lot of non-bank competitors who also have a lot of influence in Washington, some of whom is a category (inaudible) in this last election cycle where all banks in total gave and who, as a result, are influential in policy-making circles. And they want to do a lot of the things that either banks have traditionally done or to have access to things that banks have traditionally only had access to without being banks.

儘管如此，我只是想讓大家記住，這件事還有另一面。並非只有銀行才享受到監管放鬆。有許多非銀行競爭對手在華盛頓也有很大影響力，其中一些是（聽不清楚）在上次選舉週期中所有銀行都捐款的類別，因此在決策圈具有影響力。他們希望做很多銀行傳統上會做的事情，或是獲得傳統上只有銀行才能獲得但並非銀行才能獲得的東西。

So there's a lot of work that we are continuing to try to do on Washington just to make sure there's a balanced view on what a level playing field looks like. I would love to see more de novo charters approved because that would mean that the competitors that we have to face in the field every day are playing by the same set of rules that we are. But there is going to be a balance. There's going to be a relief for us and increased competition.

因此，我們在華盛頓繼續努力做很多工作，只是為了確保對公平競爭環境有一個平衡的看法。我很樂意看到更多新的章程獲得批准，因為這意味著我們每天在該領域必須面對的競爭對手與我們遵守同一套規則。但需要找到一個平衡點。這對我們來說是一種解脫，而且競爭也會更加激烈。

Okay. Great. Thank you for the color and thank you for taking my questions.

好的。偉大的。感謝您的色彩，也感謝您回答我的問題。

Erika Najarian, UBS.

瑞銀的 Erika Najarian。

Hi. Good morning. Bryan, I had a few questions just on balance sheet mix from here and I'm looking at third of the period end data. The period end date looked a little bit soft for commercial and very strong for consumer. Now given, Tim, in your comments about commercial clients' inactivity levels for the second half of the year, should we expect that mix of growth to change? Or is there a dynamic where you can continue to see strong consumer growth in the back half of the year in addition to a pickup in C&I growth?

你好。早安.布萊恩，我對這裡的資產負債表組合有幾個問題，我正在查看期末數據的三分之一。對於商業而言，該期限結束日期看起來有點疲軟，而對於消費者而言，該期限結束日期看起來非常強勁。提姆，考慮到您對下半年商業客戶不活躍程度的評論，我們是否應該預期這種成長組合會發生變化？或者是否存在這樣一種動態：除了工商業成長回升之外，您還可以看到下半年消費成長持續強勁？

I would actually expect to see a pretty balanced growth in the second half of the year. Certainly, the utilization trends, which we had a very strong fourth quarter and first quarter and it was one of the things that I think we've talked about previously, which was, hey, there is a risk that you can see a little bit of a pullback, we do think that we continue to hear that inventory build was a significant need for the utilization pickup, and that has certainly reversed some. But we still feel good about growth from from here. It's part of the reason why we actually increased our full-year average balance loan guide because of the strength that we're seeing.

我實際上預計今年下半年將出現相當均衡的成長。當然，就利用率趨勢而言，我們在第四季度和第一季度表現非常強勁，這是我們之前討論過的事情之一，那就是，嘿，存在看到一點回調的風險，我們確實認為，我們繼續聽到庫存建設是利用率回升的重要需求，而這肯定已經扭轉了一些。但我們仍然對今後的成長感到樂觀。這也是我們實際提高全年平均餘額貸款指南的原因之一，因為我們看到了這種強勁勢頭。

I mentioned in prepared remarks that pipelines in commercial were up 50%. Actually, pipelines are now in line with where pipelines were a year ago, and that led to a pretty strong end of the year last year. So even though that little bit of a pullback in utilization as well as the couple of paydowns that we saw in commercial construction, we still feel pretty positive that we're going to be able to see some nice commercial growth in the second half to supplement what we think is going to be continued broad-based growth from a consumer perspective.

我在準備好的發言中提到，商業管道增加了 50%。實際上，現在的管道數量與一年前持平，這導致去年年底的業績相當強勁。因此，儘管利用率略有下降，而且商業建築也出現了幾次償還貸款的現象，但我們仍然非常樂觀地認為，下半年商業建築將出現一些良好的增長，以補充我們認為從消費者角度來看將繼續出現的廣泛增長。

And to that end, if the consumers are still solid and you're seeing that acceleration based on the pipeline, I'm wondering about your deposit strategy, funding strategy in the second half of the year. Clearly, your demand deposit momentum is strong. Total deposits were down (inaudible) or flat. I guess, as we think about the second half of the year, how are you balancing optimizing your mix versus gathering more deposits for funding? Or do you have enough cash, I think it's $13 billion at period end, that can help fund that incremental loan growth? Sorry for the compound question. (inaudible) positions for on deposit costs in the second half of the year?

為此，如果消費者仍然穩定，並且您看到基於管道的加速成長，我想知道您下半年的存款策略和融資策略。顯然，您的活期存款勢頭強勁。總存款下降（聽不清楚）或持平。我想，當我們考慮下半年時，您如何在優化組合與收集更多存款以籌集資金之間取得平衡？或者您有足夠的現金（我認為期末時有 130 億美元）來幫助資助增量貸款成長？抱歉，這個問題比較複雜。 （聽不清楚）下半年存款成本的狀況如何？

At this point, we feel very good about our balance sheet positioning and we are going to be focused on continuing to be the core deposit funded. We've done what we've needed to do from a rate cut perspective. We do think that while our forecast based of our forward rates assumed (inaudible), we are somewhat at a higher for longer tail right now. And we are definitely more focused on balanced growth and probably cost stabilization, if not, maybe a basis point or two higher as we grow from a funding cost perspective. But it's always going to be dependent on, overall, what the balance sheet needs. So we do plan to be at a more balanced growth mode at this point as long as it's constructed from an NII/NIM perspective.

目前，我們對我們的資產負債表定位感到非常滿意，我們將專注於繼續為核心存款提供資金。從降息的角度來看，我們已經做了我們需要做的事情。我們確實認為，雖然我們的預測是基於我們的遠期利率假設（聽不清楚），但目前我們的長期利率略高。我們肯定更加重視平衡成長和成本穩定，如果不是，那麼從融資成本角度來看，隨著我們的成長，成本可能會提高一兩個基點。但總體而言，它始終取決於資產負債表的需求。因此，只要從 NII/NIM 的角度構建，我們確實計劃在此時實現更平衡的成長模式。

Got it. Thank you.

知道了。謝謝。

Mike Mayo, Wells Fargo.

富國銀行的麥克·梅奧。

Hey. I'm going to stick with the metaverse analogy here and this time, a little bit different. I'm not really sure which (inaudible) and I hear what you're saying, but is commercial loan growth back to the industry or is it not back? I'll let you choose column A or column B here. If you look at the biggest banks, it's back, that's more capital markets. You guide 5% loan growth for the year. That's pretty high. The middle market pipelines up 50%, as you said. But then the not-back column, you talked about the less commercial loan growth for the second quarter, others talk about being temporary due to tariffs, that relationship banking is muted, just-in-time borrowing. You mentioned the utilization down, I guess, 50 basis points core extra growth in commitments. And your guidance for the year does not imply much gross luck. So you're talking, hey, things are back. But then your guide, you're close to that guidance for the year (inaudible) don't grow much more. So is loan growth back or is it not? Or is it still TBD? Thanks.

嘿。我將在這裡堅持使用元宇宙類比，但這次略有不同。我不太確定哪一個（聽不清楚）我聽到了你所說的話，但是商業貸款增長是否回到了行業水平，還是沒有回歸？我會讓你在這裡選擇 A 列或 B 列。如果你看看最大的銀行，它又回來了，那就是更多的資本市場。您預計今年的貸款成長率為 5%。這相當高了。正如您所說，中端市場通路成長了 50%。但是，在未回溯專欄中，您談到了第二季度商業貸款增長較少，其他人則談到由於關稅而導致的暫時性增長，關係銀行業務低迷，即時借貸。您提到了利用率下降，我猜，承諾的核心額外成長為 50 個基點。而你今年的指導並不意味著太多的運氣。所以你說，嘿，事情又回來了。但是，按照你的指導，你已經接近今年的指導目標了（聽不清楚），不會再增長太多。那麼貸款成長是否恢復了呢？還是仍有待確定？謝謝。

Yes. I appreciate your whole (inaudible), Mike, because if I did say all those things in sequence, I can understand why you're confused. I think that you hit on a really important point at the beginning there that I just want to emphasize. And then I'm going to answer your is it back or is it not back question, which is it depends a little bit on the universe that you're in, right?

是的。我很欣賞你的全部（聽不清楚），麥克，因為如果我確實按順序說出所有這些事情，我就能理解你為什麼感到困惑。我認為您一開始就提出了一個非常重要的觀點，我只想強調一下。然後我要回答你它回來了還是沒回來的問題，這有點取決於你所處的宇宙，對嗎？

We don't play in the upper end of the markets businesses, right? You see activity at the money center banks, at the investment banks, that just doesn't exist in ours, well, that's a different universe. Our universe is mainstream banking. It's principally privately owned businesses or businesses that were privately owned and are now owned by sponsors. And I think in that universe, loan growth is back. It just may not be back at the level that when people say loan growth was going to be back at everybody thought about.

我們不從事高端市場業務，對嗎？你會看到貨幣中心銀行和投資銀行的活動在我們這裡是不存在的，嗯，那是另一個世界。我們的世界是主流銀行業。它主要是私人企業或曾經是私人企業，現在由贊助商擁有的企業。我認為在那個領域，貸款成長又回來了。它可能不會回到人們所說的貸款成長將恢復到大家所想的水平。

The amount of uncertainty you have to navigate, if you are a manufacturing materials provider, is massive in this environment. I haven't spent a lot of time out with clients this quarter. Every time I walk away from one of these manufacturing systems, I say to myself, there is no way to understand the complexity unless you're involved in it. Some time with a supplier, a major appliance manufacturers. It's like there's 8 or 10 components in any household compliant. There's an assembly. And there's a casing. Every one of those components has 5 to 25 parts, whether it's the control panel of the pump or the circuit board or whatever.

如果您是製造材料供應商，那麼在這種環境下，您必須應對的不確定性是巨大的。本季我沒有花太多時間與客戶在一起。每次我離開這些製造系統時，我都會對自己說，除非你參與其中，否則就無法理解其中的複雜性。與一家供應商（一家大型家電製造商）合作了一段時間。就像任何家庭電器中都有 8 或 10 個組件一樣。有一個集會。還有一個外殼。每個組件都有 5 到 25 個零件，無論是幫浦的控制面板還是電路板等等。

And something like three-quarters of those parts in most appliances are made overseas today. So there's like some domestic alternatives in some cases. And where there are domestic alternatives, some have enough capacity like a sheet of steel, as I understand, as an example, there's enough capacity to build the external case. I think some of the appliance can come back.

如今，大多數家用電器中大約四分之三的零件都是在海外生產的。因此在某些情況下，存在一些國內替代品。在有國內替代品的地方，有些替代品具有足夠的產能，例如鋼板，據我了解，例如，有足夠的產能來製造外殼。我認為一些設備可以恢復。

But if you're a consumer of aluminum, if we had 100% capacity online for aluminum in the U.S., we couldn't even meet half the demand, one of our aluminum clients told me the other day. So then yes, there are places where you could add. But if you're going to add capacity to the U.S., you got to have real confidence on what the tariff levels are going to be over time. Most of these deals has not been settled out yet.

但如果你是鋁的消費者，即使我們在美國擁有 100% 的鋁線上產能，我們甚至無法滿足一半的需求，我們的一位鋁客戶前幾天告訴我。是的，您可以添加一些地方。但如果你要增加美國的產能，你就必須對未來關稅水準有真正的信心。其中大部分交易尚未完成。

And then in other cases, if you need refrigerant for any (inaudible) or something like that, the refining processes are dirty enough that they don't comply with EPA standards and therefore, you got to rely on China for stuff like that.

在其他情況下，如果您需要任何（聽不清楚）或類似的東西的冷媒，那麼精煉過程就會非常髒，不符合 EPA 標準，因此，您必須依靠中國來提供這類東西。

So there are good reasons to borrow and we are seeing people exercise good reasons to borrow. But it is in the context of a big cloud with the question mark on how to think about your supply chain, whether it's materials and component manufacturers. And on what you can push through in terms of prices because there's a tug of war going on behind the scenes with most of the major distribution partners right now on what percentage of any sort of material needs to be absorbed, where in the supply chains. And the result is you're seeing people make decisions, but it's not like a wildly animal spirits risk on sort of an environment.

因此，借貸是有充分理由的，而且我們也看到人們有充分理由借貸。但它是在一片巨大的烏雲背景下出現的，關於如何思考你的供應鏈，無論是材料還是零件製造商，都存在問號。以及在價格方面你能推動什麼，因為目前大多數主要分銷合作夥伴在幕後正在進行一場拉鋸戰，爭奪需要吸收多少百分比的材料，以及在供應鏈的哪個位置。結果是，你看到人們做出決定，但這並不像在某種環境中瘋狂的動物精神風險。

So do I think that there's a possibility we could do better on the loan growth front? Absolutely. But I also think there's a possibility with the second half of the year could be involved in all sorts of uncertainty. And we're not believers in providing guidance that require some market externality to achieve. We are believers in putting guidance out and putting plans together side that we believe we can deliver under a broad range of scenarios. And if the market backdrop is better, then it's always easier to see a follow-up to support more activity than it is to do an unwind if you overly optimistic and it doesn't come through.

那麼我是否認為我們有可能在貸款成長方面做得更好？絕對地。但我也認為下半年可能會出現各種不確定性。我們也不相信提供需要一些市場外部性才能實現的指導。我們相信，提出指導意見並制定計劃，我們就能在各種情況下實現這些目標。如果市場背景更好，那麼總是更容易看到後續行動來支持更多的活動，而不是在過於樂觀而沒有實現的情況下進行平倉。

I guess that goes to your point about changes to complex systems and difficulty in predicting.

我想這與你關於複雜系統的變化和預測難度的觀點相符。

Yeah. I thought our world is complex. And then you sit in some of these supply chain discussions and it's way more difficult to take apart than an (inaudible) meeting at Fifth Third.

是的。我認為我們的世界很複雜。然後你參加一些供應鏈討論，你會發現，這比在 Fifth Third 舉行的（聽不清楚）會議困難得多。

Got it. All right. Thank you so much.

知道了。好的。太感謝了。

Chris McGratty, KBW.

克里斯·麥格拉蒂，KBW。

Tim, maybe following up on the loan growth, I mean, any comments on credit spreads? You've seen a lot of peers talk a little bit more optimistically about growth in the quarter. What are you seeing, if anything, on credit spreads?

提姆，也許可以跟進貸款成長情況，我的意思是，對信用利差有什麼評論嗎？您已經看到許多同行對本季的成長持更樂觀的態度。您對信用利差有何看法？

Hey, Chris. It's Bryan. Credit spreads have actually been pretty stable. In general, we're sitting spreads in line with what we've seen, honestly, for the last handful of quarters. So nothing that we would call out on that front. The only thing that we're seeing from time to time is that some folks are getting a little bit irrational on protecting (inaudible) accounts. Every now and then, it is more about defending business versus seeing unreasonable credit spreads as people are trying to grow.

嘿，克里斯。我是布萊恩。信用利差其實一直相當穩定。整體而言，我們所處的利差與過去幾季的情況一致。因此，我們不會就此提出任何要求。我們不時看到的唯一情況是，有些人在保護（聽不清楚）帳戶方面變得有點不理智。有時，人們更關心的是保護企業，而不是在努力發展時看到不合理的信用利差。

Okay. Perfect. And then my follow-up would be on credit and in permanent in classifieds and non-accruals this quarter and tighten up the charge-off guidance. The back half of the year, maybe a little bit more detail on what you're seeing in the resolution process that gives you confidence, borrower conversations, inflow activity? Stuff like that would be great.

好的。完美的。然後，我的後續工作將是本季度的信貸和永久分類廣告和非應計項目，並加強沖銷指導。今年下半年，也許您可以更詳細地了解您在解決過程中看到的情況，這些情況會給您帶來信心，包括借款人對話、流入活動？有這樣的事就太好了。

So we opened the NPA reduction books and talked about in the category of doing what we said. We said last quarter, we had good visibility into the resolution of 40% of our commercial NPAs over the next few quarters. We hit 18% this quarter. I feel good about our ability to hit 40% over the next couple of quarters based on what we're seeing.

因此，我們打開了不良資產削減書籍，並討論了說到做到的問題。我們在上個季度表示，我們對未來幾季內 40% 的商業不良資產的解決方案有良好的預見性。本季我們達到了 18%。根據目前的情況，我對我們在未來幾季達到 40% 的成長率充滿信心。

I think to your question to not only do we make great progress on the existing NPAs, our inflows of NPAs dropped 77% from last quarter. So we're not seeing the inflows that we had the prior quarter. So it's a good reflection of improved overall credit performance (inaudible) serves as our ongoing proactive portfolio management.

我認為，對於您的問題，我們不僅在現有不良資產方面取得了巨大進展，而且不良資產流入量較上一季下降了 77%。因此，我們沒有看到上一季的資金流入。因此，它很好地反映了整體信貸表現的改善（聽不清楚），也是我們持續主動的投資組合管理。

Very helpful. Thanks a lot.

非常有幫助。多謝。

Steven Alexopoulos, TD Cohen.

史蒂文‧亞歷克斯普洛斯 (Steven Alexopoulos)，TD 科恩 (TD Cohen)。

Hi, everybody. Hey, Tim, I wanted to I want to go back to your comments about some of the stable. Got quite a bit here is what does it mean to fifth or your customers or a strike who's talking about adopting their own stable point potentially? What does it means for business from residues in as relevant to a company like that, if they have their own stablecoin, could you unpack that for us?

大家好。嘿，蒂姆，我想回到你對一些馬厩的評論。這裡有很多問題，對於第五位或您的客戶或正在談論採用他們自己的穩定點的罷工者來說，這意味著什麼？如果他們有自己的穩定幣，這對與這樣的公司相關的殘留業務意味著什麼，您能為我們解釋一下嗎？

Yes. Does that narrowly answer for a company like a (inaudible), for a company like the (inaudible) or some of these others that we are have been fortunate to do business with the proposition that these technologies is a good thing. And it's probably on balance, more business opportunity for certain. Okay? Because that in order to buy a stable coin, you have to on-ramp currency from (inaudible) and we're in that business. And in order to convert a stable going back into $1 post transaction, you have to offer embedded and we're in that business and you've got to be able to hold the value on the reserve account somewhat where and manage intraday liquidity. So the minting and burning of coins throughout the day. And we're a good provider of instant payment rails.

是的。這是否狹隘地回答了對於像（聽不清楚）這樣的公司，對於像（聽不清楚）這樣的公司，或者對於我們有幸與之做生意的其他一些公司來說，這些技術是一件好事。總體而言，這肯定意味著更多的商業機會。好的？因為為了購買穩定的貨幣，你必須從（聽不清楚）取得貨幣，而我們從事的就是這個行業。為了將穩定價格轉換為交易後 1 美元，您必須提供嵌入式服務，我們從事這項業務，您必須能夠在某種程度上保持儲備帳戶中的價值並管理日內流動性。因此，整天都在鑄造和燒毀硬幣。我們是即時支付管道的優秀提供者。

And I think that they essentially can develop directly into their existing code basis. You don't have a recon process that has to get done as a way that you won, you are using some other infrastructure. So I think that is an encouraging. What I will say though, is if you look at the (inaudible) and you look at the end of the (inaudible) and some of the others who have been more vocal in active about what they would do with stable coins.

我認為它們基本上可以直接在現有的程式碼基礎上進行開發。您不需要按照獲勝的方式完成偵察過程，而是使用其他一些基礎設施。所以我認為這是令人鼓舞的。不過，我想說的是，如果你看一下（聽不清楚），看看（聽不清楚）的結尾，以及其他一些更積極地談論他們將如何使用穩定幣的人。

A lot of the focus is still on cross-border act (inaudible) get both bills and collect payments from companies all over the world and then have to pay for hosting and a variety of services and all sorts of jurisdictions around the world. That's a perfect sort of an ecosystem for a stable coin because you can move currency on chain and then transacting at instantaneously or near instantaneously across borders in places where there there isn't interoperability and the domestic payment schemes today.

許多焦點仍然放在跨境行為（聽不清楚）上，從世界各地的公司獲取帳單和收取付款，然後支付託管和各種服務以及世界各地各種司法管轄區的費用。對於穩定幣來說，這是一個完美的生態系統，因為你可以在鏈上轉移貨幣，然後在目前缺乏互通性和國內支付方案的地方即時或近乎即時地進行跨境交易。

So I think I'm quite optimistic about what that means for us. The wildcard would be if you saw people move money out of banks and into stablecoins in the U.S. for deficit payments are domestic cash management that fuel highly unlikely to me, we have digital money that provides it, you know, a yield which stablecoins down in the form of all of these online banks and money market funds that already exist. And we have low cost, ubiquitous and it's already embedded in the in-center near (inaudible) payment schemes that if there is that sort of a good enough test that you have to run on this stuff.

所以我認為我對這對我們意味著什麼感到十分樂觀。最不尋常的是，如果你看到人們將錢從銀行轉移到美國的穩定幣中，用於彌補赤字，那麼國內現金管理就不太可能了，我們有數字貨幣可以提供收益，穩定幣以所有這些已經存在的網上銀行和貨幣市場基金的形式提供。而且我們成本低，無處不在，它已經嵌入到中心附近（聽不清楚）支付方案中，如果有那種足夠好的測試，你就必須在這些東西上運行它。

Okay. Those are my questions.

好的。這些都是我的問題。

Thank you. Great. I understand from Matt that that was last of our questions. And before we want to close it out, I just wanted to give a quick shout-out to our friends at Skyline Chili down the road who were just named the best regional restaurant chain in the U.S. Just lends more evidence to my belief that the best regional businesse is Bloom in Cincinnati. So congratulations, guys.

謝謝。偉大的。我從馬特那裡了解到這是我們的最後一個問題。在我們結束之前，我只想快速地向我們在 Skyline Chili 的朋友們致以一聲感謝，他們剛剛被評為美國最佳區域性連鎖餐廳。這更證明我的觀點：最佳區域企業是辛辛那提的 Bloom。所以，恭喜你們，夥計們。

Thanks, Tim. Thanks, Tiffany. And thanks, everyone, for your interest in the Fifth Third. Please contact Investor Relations department if you have any follow-up questions. Tiffany, you may now disconnect the call.

謝謝，蒂姆。謝謝，蒂芙尼。感謝大家對 Fifth Third 的關注。如果您有任何後續問題，請聯絡投資者關係部門。蒂芬妮，你現在可以掛斷電話了。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。